November 30,2021

Cash vs Bitcoin: A staggering victory?

 Cash vs Bitcoin: A staggering victory?

 

Ever since the creation of bitcoin in 2009, it has been touted as a revolutionary money value with no central bank, no transaction fees and nearly infinite supply. But when the economic recession hit in 2010 and people began turning to alternative currencies like gold and silver to protect their investments, bitcoin lost its shine. Now bitcoin is providing a great facility through trading and crypto currency mining.

However, nowadays, people are again showing great support towards Bitcoin, and it has also shown equal support by making great money to traders. More and more online platforms are accepting Bitcoin as a payment method, and its demand is hiking in the same pattern. Some experts consider that this crypto coin has the potential to replace all cash-based transactions. This cash vs Bitcoin trend is discussed here in detail.

 

Advantages of using bitcoin over cash

While it is true that Cash vs Bitcoin is a more profitable and efficient means of exchange, there are still a few reasons why you wouldn't quite want to give up your bitcoins for this new product.

  • First of all, bitcoins have a fixed value in their currency. So no matter where you send or spend your bitcoins in the world, they will always be worth the same amount in USD.
  • In addition, if you own a business that accepts bitcoin as payment, you're protected from the risk of holding stocks of cash because you can immediately sell your bitcoins on an exchange for USD without having to deal with any bank processing time for transfers.
  • Bitcoin's low fees can also be a disadvantage when accepting cash.
  • When comparing the cost of transferring the same amount of money between bitcoin and cash, it becomes apparent that transfer costs will likely outweigh the benefits of holding cash. 
  • Also, while you can earn more interest on some bank accounts by keeping them for over 12 months, the interest rates on these accounts are often eventually cancelled.
  • However, with bitcoin, your bitcoins will never expire. That way, every time you make a transaction with bitcoins, you are making money back in interest on your investment.

Where are Bitcoins accepted?

As of today, over 700 thousand merchants around the world (including major companies like Microsoft) accept Bitcoins for their products and services. From a payment perspective, Bitcoin is gaining ground in the market. In September 2012, over 1 million people from around the world used Bitcoins to buy products from vendors. In 2013, this number increased to 12 million people, mostly from Europe and Asia. By December 2013, there was already more than 20 billion dollars worth of transactions made with Bitcoins every month. In addition, some major companies like Overstock, Travala, Paypal and even your favourite Starbucks is now accepting bitcoin as a payment method.

Modern technology is making everything feasible by getting it online and providing free crypto coins by simple crypto mining. Our conventional cash payment is also not deprived of this advancement of technology. However, complete use of bitcoin for all cash-based transactions is day yet to come, but it is indeed possible.

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